Meta Leaps As Zuckerberg Touts AI Pipeline In Solid Earnings, Outlook
"We have the most exciting roadmap I've seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline," said CEO Mark Zuckerberg.
Updated at 4:24 pm EDT
Meta Platforms (META) - Get Free Report posted better-than-expected second quarter earnings late Wednesday, powered by solid ad sales and more gains in Facebook users, and forecast near-term revenues that topped Street forecasts, sending shares sharply higher in after-hours trading.
The Facebook parent said profits for the three months ending in June were pegged at $2.98 per share, up 21.1% from the same period last year and just ahead of the Street consensus forecast of $2.92 per share.
Group revenues, Meta said, rose 2.9% to $32 billion, nearly all of it -- $31.5 billion -- coming from the new 'Family of Apps' division the company created last year.
Ad impressions rose 34%, Meta said, although the average price per ad was down 16%. Meta unveiled a series of new AI-related tools it plans to roll-out across its various apps last month, including a chatbot similar to ChatGPT for Facebook Messenger and WhatsApp and has said its been working with advertisers in testing consumer-facing generative AI techniques.
Facebook daily active users were up 5% to 2.06 billion, while monthly active users were up 3% to 3.03 billion
Looking into the current quarter, Meta said it sees revenues in the region of $32 billion to $32.5 billion, a range that fall under the Street forecast of $31.3 billion.
"We had a good quarter. We continue to see strong engagement across our apps and we have the most exciting roadmap I've seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall," said CEO Mark Zuckerberg.
Meta shares were marked 5% higher in after-hours trading immediately following the second quarter earnings update, suggesting a Thursday opening bell price of $313.50 each
Reality Labs, however, the division that houses the company's metaverse plans, will continue to see "meaningful" operating losses in the coming year.
Meta said the division was $3.74 billion in the red for the three months ending in June, after generating just $276 million in revenues.
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